Analysts Have Made A Financial Statement On Symbotic Inc.'s (NASDAQ:SYM) Second-Quarter Report

Shareholders will be ecstatic, with their stake up 21% over the past week following Symbotic Inc.'s (NASDAQ:SYM) latest quarterly results. Revenues of US$424m beat expectations by a respectable 2.3%, although statutory losses per share increased. Symbotic lost US$0.07, which was 147% more than what the analysts had included in their models. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Symbotic

Taking into account the latest results, the current consensus from Symbotic's 16 analysts is for revenues of US$1.76b in 2024. This would reflect a solid 18% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 58% to US$0.083. Before this latest report, the consensus had been expecting revenues of US$1.74b and US$0.04 per share in losses. While this year's revenue estimates held steady, there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The consensus price target held steady at US$55.53, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Symbotic, with the most bullish analyst valuing it at US$65.00 and the most bearish at US$40.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Symbotic's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 38% growth on an annualised basis. This is compared to a historical growth rate of 49% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.7% per year. Even after the forecast slowdown in growth, it seems obvious that Symbotic is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Symbotic. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$55.53, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Symbotic going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Symbotic you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.